The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

ion Hills this Wee Wednesday, July 15, 1992, Page 15 BUSINESS What will $1 million buy in 20 years? Fifty years ago when I was growing up, anyone who became a millionaire, or was a millionaire, was looked up to in awe and held in the highest esteem.Today, I am told there are several new million- aires developed virtually every working day of the week. I can also state that 50 years ago the average wage might have been $20 per week, and when I started working as an apprentice in 1942, I received 20 cents per hour, but skilled workers were were earning 70 to 80 cents per hour (I remem- ber a union winning a contract giv- ing their workers 80 cents per hour, a fantastic figure back then). So, a millionaire, 40 or 50 years ago was really something. Those workers who won that contract at cents per hour-(48-years ago) are probably earning $15 to $18 per hour, plus benefits of as much as $5 per hour. That’s an average of over 20 times what they were earn- ing 48 years ago. This also means that today you would have to have achieved more than the $20 million dollar status, to have the same purchasing power as $1 million had back in 1942. What have the last 20 years shown? Inflation has averaged 7.02% per year, thank goodness it has been much lower in the last seven years. It means that today, it costs $38,842 to purchase the same amount of goods and services that $10,000 would have bought 20 ars ago. We need $3.88 to buy what $1 bought back then! Frightening, isn’t it? We still hear people say “I want to become a millionaire”, but does it have the same meaning as the millionaire status did when I was a boy? What about the people who do achieve the millionaire status, even today? Can you name one, yes just one, who became a millionaire by saving and putting their savings and insurance companies? I don’t believe there is such a soul, because all people who do become wealthy do so by “investing” rather IT'S YOUR MONEY «| mS ne J. Rockell than “loaning” money to an institu- tion, which is what we do when we make deposits. Let’s suppose 20 years ago. someone had $1 million and they loaned it out (to a bank, insurance company or to the Government by buying Canada Savings Bonds and/or T-Bills) and achieved a 10% return all the way through. Someone else bought an apart- ment building with their $1 million 20 years ago, and received a rental profit of 10% all through those years. You can say they both eamed the same income. True. But the apartment owner saw the value of his apartment grow to $3,884,776 (if it just kept pace with inflation), whereas the person with the money earning interest still has only the $1 million (but it’s guaran- teed). One is $2,884,776 richer than the other, yet the both earned the same “income” (10 percent). ‘What if you had that million dol- lars 20 years from now. If inflation equals what it was in the past 20 years, a $15,000 car will cost $58,263. What will your savings buy, 20 years from now? Will your savings increase in value to give you pur- chasing power that exceeds the rav- ages of inflation and taxes? This writer believes that we must all become “investors” (I use mutu- al funds) rather than “loaners” who earn interest. When we earn inter- est we achieve the profit (which is 100% subject to taxes) and our principal is eroded by inflation. When we own something (investors) we receive profits in the form of dividends and capital. gains (both of which are taxes much less that interest) and over time the yalue of the asset is likely to match or exceed inflation. How do you save your money? Or do you save for your future well-being? Do you save 10% of what you earn? Do you understand the concept of paying yourself first? For more information at no charge, contact Peter C. M.B.A., Regal bedia) Wants Ltd. Fagan Drive, Georgetown, Ontario or phone 877-7216. Paul J. Rockel is the author of the best seller “Why I Invest in Mutual Funds” and president of Regal Capital Planners Ltd. i Odd job squad to help homeowners by Jamie Harrison The Georgetown office of the Canada Employment Centre for Students has found a way for homeowners to clean up those small jobs “that keep piling up” around the house while at the same time giving stu- dents a summer job. The Odd Job Squad is a crew of about 40 students from both the high school and post sec- ondary educational level who are interested in working ona temporary basis. According to the employment centre’s Sarah Footman the project is “going really well” and eases the economic burden on parents when kids find work with the squad. The centre gives suggestions as to just what the members of the squad can be hired to do. Cleaning garages, chopping fitewood and mowing lawns are just a few of the 29 ideas the job centre has for its odd jobbers. Students working as part of the squad are in for a summer full of variety in terms of employment, something which could come in useful later in life when those skills may be called upon again in a “larger way”, Footman said. Footman said that 85 per cent of jobs are not advertised, but found through networking and word-of- mouth exposure. She added that one job skills is paramount suggested those seeking HIRE A STUDENT employment keep resumes short, always include a cover letter, and do some research on the organiza- tions where they are applying. The centre is closing August 1, In an ironic twist the closure will-leave Footman searching for a full- time job. “I’m following tules,” Footman said, but she intends to use the skills she has taught at the centre to help her land'a job for the rest of the summer. She also offers advice to those who have found work for the sum- mer: “Don’t slack because there is ae a little time left before Make your move. ie PARTICIPACI SD oe ‘student employment centre has undertaken a campaign to raise its profile over recent years, includ- ing marquee advertising and mes- saging on payne at fastfood establishments. Halton Hills This Week 873-2254 KING € SUBMARINE FLYERS IN TODAY'S HALTON HILLS THIS WEEK IN GEORGETOWN DELIVERY ONLY if you did not receive one call us at 873-2254 PIZZA “ti ai ERG wie EVEL WEBGTER GEORGETOWN GLOBE PRODUCTIONS presents ECM tel Lich JIM JACOBS wo WARREN CASEY a PLAYING THIS THURSDAY, FRIDAY, SATURDAY: al the HOLLYWOOD TAVERNG © IR@remMN ony or ee “A PLACE WHERE FRIENDS MEET” Church Street, Georgetown TRUE BLUE AUGUST, 687 AUGUST NOW WITH 3 POOL TABLES tage Manager 200 20am. & 80pm AT THE CORNER OF WINSTON CHURCHILL & HIGHWAY 7 “ii COLLIER 00 p.m. pi p.m. 877-4164 ie WesteRn Gus Tickets 1200 _maemmnemmenal Available at Royal LePage Rea . Georgetown